After months of back and forth, the Competition Authority of Kenya (CAK) has approved Airtel-Telkom’s merger.
In a Kenya Gazette notice, CAK notes that Airtel Networks Kenya proposed to acquire the mobile operations, enterprise, and carrier service business of Telkom Kenya Limited.
Furthermore, CAK stated that the merged entity shall not sell or transfer operating and frequency spectrum licences within the remaining duration of the said licences.
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Furthermore, upon the expiry of the term of the merged entities’ operating license, the spectra in the 900MHZ and 1800MHZ acquired from Telkom shall revert back to the Government of Kenya (GoK).
CAK further restricts the merged entity from entering into any form of sale agreement within the next five years.
In addition, CAK stipulates that the merged entity honour all existing contractual terms with government entities
In a move seen to counter Safaricom’s dominance, the merged entity will have access to 4,204 kilometres of fibre managed by Telkom on behalf of the government at the current market rates. There shall be no preferential rates unless stated in existing contracts.
Moreover, CAK wants the new entity to retain 349 employees;
- 120 employees by the merged entity for a period of two (2) years from the date of the implementation of the merger
- 114 employees by Telkom Kenya Limited for a period of two (2) years from the date of the implementation of the merger
- 115 employees to be absorbed by the network partners of the merged entity
The merged entity is to annually furnish the Authority with a detailed report on compliance with the above conditions
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